Home For Reports And Litigation On Aspects Of The California High Speed Rail's Finances

As a team of financial experts, with many years of diverse experience, we have reviewed and analyzed the financial aspects of the planned California High Speed Rail project, and
have documented the financial risks of this project in a series of reports. We are proud to present our
reports here.

If you are visiting this Web site for the first time, please click on the "1. Background Information" area to the left, or below, for guidance on how to find the information you are seeking.

News Flash - April 22. 2014 - In support of a Senate Bill being proposed to call for a "re-vote" on HSR this Fall, Mr Grindley presented "The California
High-Speed Rail Project – To Have The Train OR To Obey The Law: That Is The
Question", pointing out the many technical, financial, legal, and marketplace issues now facing the High Speed Rail Project. The Bill failed to be approved by the Senate Committee. This presentation is available in Section 3.1 of
this Web site.

News Flash - April 8, 2014 - Comments regarding the Draft 2014 Business Plan were submitted to the Authority by Mr. Grindley and Mr. Warren. These comments ranged from pointing out the illegality of the Authority's projection for a possible need for an operating subsidy in the initial operation years of the Initial Operating Segment to an analysis of the automobile marketplace that would lead one to disbelieve the CHSRA's Ridership Forecast of the penetration of this market by HSR. None of these comments were acted upon before the Draft Plan was accepted by he Board of Directors. These comments are available in Section 3.1 of
this Web site.

News Flash - April 2, 2014 - This Briefing Paper "Why Cap & Trade
Funds Cannot Be Used To Finance High-Speed Rail In California" provides four different papers that speak to the issues associated with the use of Cap and Trade funds to construct the HSR project. With the Governor proposing to allocate to HSR $250 Million of Cap and Trade funds over the next year and a third of all available Cap and Trade funds in future years, this analysis is timely. This report is available in Section 3.1 of
this Web site.

News Flash - March 13, 2014 - This Briefing Paper "If You Build It, They Will Not Come" looks at the California High-Speed Rail Authority's proposal to bring a
new service to the market in 2022.Its initial
+$31 billion cost may make it the most expensive ‘launch’ in history, and a lot
depends on whether it will be able to attract enough riders to make it
profitable.If the travel times or costs
to passengers for using rail and buses can’t beat going by highway or flying,
Californians will have to subsidize its operations forever.This report is available in Section 3.1 of
this Web site.

News Flash - February 7, 2014 - An Addendum has been released to the July 2013 Briefing Paper “Diminishing Prospects For The Initial Construction Section/Central Valley Project”.

This report looks at the contractual and legal issues that exists between the California High Speed Rail Authority (CHSRA) and the DOT/FRA, as well as the obligations of Prop 1A and AB 3034. Underneath this complex set of obligations and constraints, the projected construction costs for
the Initial Construction Segment and the available funding are analyzed. The conclusion is that in all likelihood the existing funding may
be insufficient to accomplish the objectives of the CHSRA's 2012 Business Plan. The addendum points out that, based on recent cost estimates from the Authority, our initial estimate of $7 Billion to build the ICS needs to be revised upwards to $7.8 Billion. This report and the addendum are available in Section 3.2 of
this Web site.

News Flash - January 29, 2014 - This Briefing Paper “Fleecing Local High-Speed
Train Riders While Big City Executives Ride Cheaper” refutes California High Speed
Rail Authority’s claims, in their 2012 Business Plan, of lower per mile ticket prices for local high-speed
rail (HSR) passengers. Riding a HSR train in the Central Valley, Southern
California or the San Francisco
Peninsula will cost 3-4
times the present-day rail fares between the same destinations. This report is available in Section 3.2 of
this Web site.

Note: Between August and October 2013 there were a series of submissions to the court and court rulings with respect to the Tos lawsuit. These documents can be found in Sections 5.5 to 5.9 of this Web site.

Note: As of June 2013, the California High Speed Rail Authority (CHSRA) has a new Web
site.It is www.hsr.ca.gov

Their old Web site, which was at www.cahighspeedrail.ca.gov, has
been shut down.Any attempt to access
this Web site, and any of the information or documents that was contained on
this site, will be re-directed to the new site’s home page.Our Web site contains reports and documents that
reference, via footnotes, CHSRA documents with a direct link to the old CHSRA’s Web site. Therefore we
are providing a list of these CHSRA documents and their new direct link, on the
CHSRA’s new Web site.Please go to
Section 1.1 for this information on accessing the new CHSRA Web site.

NOTE: On April 26, 2013, following the CHSRA's filing of their
court papers by the Attorney General's Office (which represents the
CHSRA), the lawyers representing Tos, Fukuda and King’s County filed their Closing Briefs and
supporting Declarations. These documents are in Section 5.3 and 5.4 of
this Web site.

NOTE: Or March 15, 2013, lawyers representing the Tos
and all plaintiffs against the CHSRAfiled their Legal Briefs and supporting Declarations in Sacramento today.We are pleased that much of our work over the
past few years was of assistance to the attorneys working on this case, and that
we were also given the opportunity to contribute our own declarations in
support of the case. For a copy of the March 15 2013 Press Release, please go to Section 5.0. For an overview of
the case and the Legal Briefs, please go to Section 5.1.To see all the declarations, please go to
Section 5.2.